S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    266
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced by M. of A. CAHILL -- read once and referred to the Committee
   on Labor
 
 AN  ACT  to  amend  the labor law, in relation to the tipping and hourly
   wages of food service workers and back-of-the-house employees

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 651 of the labor law is amended by adding three new
 subdivisions 10, 11 and 12 to read as follows:
   10.  "BACK-OF-THE-HOUSE  EMPLOYEE" MEANS AN EMPLOYEE PRIMARILY ENGAGED
 IN THE PREPARING OF FOOD OR BEVERAGES OR WORK DIRECTLY  RELATED  TO  THE
 FUNCTIONALITY OF A KITCHEN OR FOOD AND BEVERAGE PREPARATION AREA WHEREBY
 THE  EMPLOYEE  DOES NOT INTERACT WITH PATRONS OR CUSTOMERS A MAJORITY OF
 THE TIME. THIS SHALL INCLUDE, BUT NOT BE LIMITED TO,  EMPLOYEES  IN  THE
 HOTEL OR RESTAURANT INDUSTRIES WHO SERVE AS CHEFS, PANTRY OR PREP COOKS,
 LINE COOKS, SHORT ORDER COOKS, EXPEDITERS, KITCHEN HANDS AND DISHWASHERS
 WHO  ARE  PROHIBITED FROM RECEIVING TIPS FROM GUESTS, PATRONS OR CUSTOM-
 ERS.
   11. "TIP SHARING" IS THE PRACTICE BY WHICH A DIRECTLY TIPPED  EMPLOYEE
 GIVES  A  PORTION OF HIS OR HER TIPS TO ANOTHER SERVICE EMPLOYEE OR FOOD
 SERVICE WORKER WHO PARTICIPATED IN PROVIDING SERVICE  TO  CUSTOMERS  AND
 KEEPS THE BALANCE.
   12. "TIP POOLING" IS THE PRACTICE BY WHICH THE TIP EARNINGS OF DIRECT-
 LY  TIPPED  EMPLOYEES  ARE INTERMINGLED IN A COMMON POOL AND THEN REDIS-
 TRIBUTED AMONG DIRECTLY AND INDIRECTLY TIPPED EMPLOYEES.
   § 2. The labor law is amended by adding a new section 652-a to read as
 follows:
   § 652-A. TIP SHARING AND TIP POOLING. 1. RESTAURANTS  AND  HOSPITALITY
 BUSINESSES MAY PERMIT TIP SHARING AND TIP POOLING AS DEFINED IN SUBDIVI-
 SIONS ELEVEN AND TWELVE OF SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE
 AMONG BACK-OF-THE-HOUSE EMPLOYEES PROVIDED THAT SUCH BUSINESSES PAY FOOD
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD03118-01-9

 A. 266                              2
 
 SERVICE  WORKERS AND BACK-OF-THE-HOUSE EMPLOYEES NOT LESS THAN THE MINI-
 MUM WAGE ESTABLISHED PURSUANT TO SUBDIVISION ONE OF SECTION SIX  HUNDRED
 FIFTY-TWO OF THIS ARTICLE.
   2.  (A)  ANY RESTAURANT OR HOSPITALITY BUSINESS THAT CHOOSES TO PERMIT
 TIP SHARING AND TIP POOLING AS AUTHORIZED IN THIS SECTION IS REQUIRED TO
 INFORM THEIR EMPLOYEES OF SUCH POLICY  THROUGH  A  CONSPICUOUSLY  POSTED
 NOTICE  OR  OTHER  EFFECTIVE  MEANS  OF  DISCLOSURE WITH AS MUCH ADVANCE
 NOTICE AS POSSIBLE.
   (B) IF AT ANY TIME SUCH BUSINESS THAT WAS  PREVIOUSLY  PERMITTING  TIP
 SHARING  AND  TIP POOLING AS AUTHORIZED IN THIS SECTION CEASES TO DO SO,
 THAT BUSINESS IS REQUIRED TO  INFORM  THEIR  EMPLOYEES  OF  SUCH  ACTION
 THROUGH  A  CONSPICUOUSLY  POSTED  NOTICE  OR  OTHER  EFFECTIVE MEANS OF
 DISCLOSURE AT LEAST SEVEN DAYS PRIOR TO IMPLEMENTING SUCH  A  POLICY  OR
 WITH AS MUCH ADVANCE NOTICE AS POSSIBLE.
   §  3.  The commissioner of labor shall promulgate such rules and regu-
 lations necessary for the purposes of carrying  out  the  provisions  of
 this act.
   § 4. This act shall take effect January 1, 2021.